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National Competitive Advantage and the Roles of Economic and Political Freedom: Evidence from Hong Kong

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Abstract

The equivocal interrelationships betweeneconomic performance and the institutionsof, respectively, economic and politicalfreedom are examined using data from firmsoperating in Hong Kong, an economy whereboth an erstwhile paramount internationalbusiness reputation for competitiveness andthe institutional basis on which it waspredicated have come into question inrecent years. It is hypothesized that (i)both economic and political freedomdeclines will be associated with a proxyfor future economic performance,competitiveness decline, but that (ii) thecorrelation of economic freedom declineswith competitiveness decline will bemediated by political freedom declines. Hierarchical regression analyses tend tosupport these hypotheses, although resultsvary by firm origin.

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Thompson, E.R. National Competitive Advantage and the Roles of Economic and Political Freedom: Evidence from Hong Kong. Public Choice 120, 401–437 (2004). https://doi.org/10.1023/B:PUCH.0000044294.44879.86

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